Transformation of the Global Financial System in the First Two Decades of the Twenty-first Century

The article analyzes the changes that have occurred in the global financial system in the XXI century. Moreover, the study covers the global financial system in its integrity as a combination of different financial markets and international financial institutions. Based on the analysis of statistical data, it is shown that the global economic and financial crisis of 2007-2009 led to a reduction in international capital flows, a change in their structure (towards an increase in the share of foreign direct investment) and a decrease in cross-border financial activity. In the post-crisis period, government debt and equity markets developed relatively more dynamically, while banking activity was restrained, including as a result of intersectoral arbitrage caused by international financial system reforms. The process of reforming the global financial system has reduced risks in certain segments of the global financial market (banking services markets, over-the-counter derivatives), but retained relatively less regulated segments that may be subject to risks of financial shocks. Changes in the global financial architecture have led to the formal involvement of emerging markets in the process of reforming the global financial system (through the Group of 20) and to some strengthening of the supranational component of regulation. However, in general, the interests of countries with emerging markets both in the reform processes and in the construction of the global financial architecture are not fully taken into account.